First Internet (INBK) Surges 6.1%: Is This an Indication of Further Gains?

First Internet Bancorp (INBK) shares rallied 6.1% in the last trading session to close at $21.82. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.9% gain over the past four weeks.

First Internet Bancorp stock rallied yesterday on improving sentiment around U.S. banks ahead of earnings. Expectations of a favorable interest rate backdrop, steady commercial lending growth, and stable deposit costs likely drove the upside in INBK shares.

This internet bank is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of -36.4%. Revenues are expected to be $44.2 million, up 24.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For First Internet, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on INBK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

First Internet belongs to the Zacks Banks - Northeast industry. Another stock from the same industry, First Mid Bancshares (FMBH), closed the last trading session 1.2% higher at $42.13. Over the past month, FMBH has returned 3.7%.

For First Mid Bancshares, the consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $1.08. This represents a change of +12.5% from what the company reported a year ago. First Mid Bancshares currently has a Zacks Rank of #3 (Hold).

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First Internet Bancorp (INBK): Free Stock Analysis Report

First Mid Bancshares, Inc. (FMBH): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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